Bunnings snaps up SA retailer Adelaide Tools to double down on trades

Hardware and tools giant Bunnings has entered into an agreement to purchase 70-year-old family business Adelaide Tools for an undisclosed sum.

Based out of Keswick in South Australia, the local hardware and DIY retailer operates five stores across the state, along with a lawn mower centre in Somerton and an online store.

Bunnings has entered into an agreement to acquire Adelaide retailer Adelaide Tools.Credit:Patrick Scala

Bunnings managing director Mike Schneider said the acquisition, which is still subject to regulatory approval, would help the Wesfarmers-owned retailer accelerate growth in its trade business and better engage with trade customers.

“While our businesses are very different, we see strong alignment between the Adelaide Tools andBunnings brands with both businesses having a strong focus on team, advice and service – we believe this acquisition will deliver even more choice and convenience for trade customers," he said.

Adelaide Tools will continue to operate under its name. The terms of the deal were not disclosed at the request of the Peach Family, The Age and The Sydney Morning Herald understand.

"This shows a vote of confidence in the South Australian retail market and is great recognition for the brand that we have built over the last 70 years, offering specialist advice range and service for our customers," Adelaide Tools director Rob Peach said in a statement.

Bunnings is the shining gem in Wesfarmers' portfolio, accounting for 57 per cent of its profits. In the 2019 financial year, Bunnings reported earnings of $1.62 billion and revenue of $13.1 billion.